Compound Interest Practice Test 3

Question : 24 of 40

Marks: +1, -0

A sum of money at compound interest amounts to double that of the capital in 2 years. In how many years will it be 8 times of itself?

Solution:

Let the sum = Re 1
Amount

=P(1+r/100)^t

2=1(1+r/100)^2

Cubing both sides,

2^3=[1(1+r/100)^2]^3

8=1(1+r/100)^6

So, in 6 years time, it will be 8 times.

Go to Question:

Prev Question

Next Question